WASHINGTON -LRB- CNN -RRB- -- President-elect Barack Obama plans to nominate New Mexico Gov. Bill Richardson to be secretary of commerce , a Democratic source told CNN on Tuesday .

New Mexico Gov. Bill Richardson was a candidate for the Democratic presidential nomination this year .

The former Democratic presidential candidate 's name has been bandied about as the next head of Commerce .

Obama spoke with Richardson about the position November 14 , a senior Democratic source said . The source said Richardson has always been on Obama 's list of possibilities for the key Cabinet position .

Richardson , 61 , also traveled to Chicago , Illinois , in November to meet with Obama , according to a source .

`` He brings to this plate , in particular in an era where the economy is the focus of attention , a lot of skills that could be put to use -- perhaps opening up marketplaces for U.S. products abroad , '' CNN senior political correspondent Candy Crowley said .

`` In New Mexico , he sought to bring in new businesses and to create jobs ... so the Obama team considers this part of the economic team . ''

One of the most prominent Hispanic politicians in the nation , Richardson withdrew from the race for the Democratic presidential nomination January 10 and later endorsed Obama .

He has served as a U.N. ambassador and as energy secretary in the Clinton administration .

If Richardson steps down as chief executive of New Mexico , Democratic Lt. Gov. Diane Denish takes over . She was Richardson 's running mate in the 2002 and 2006 gubernatorial elections .

It 's a very different situation in neighboring Arizona , where another Democratic governor , Janet Napolitano , is also stepping down to join the Cabinet . Arizona does n't have a lieutenant governor . Under state law , Secretary of State Jan Brewer -- a Republican -- takes over .

Richardson sought the Democratic presidential nomination but dropped out of the race after a poor showing in the January 8 New Hampshire primary .

Declaring that Obama is an `` extraordinary American , '' Richardson endorsed Obama to be the Democratic nominee for president March 21 .

`` Barack Obama will make a great and historic president , '' Richardson said at a rally in Portland , Oregon , with Obama at his side . '' -LSB- It -RSB- is a once-in-a-lifetime opportunity for our nation , and you are a once-in-a-lifetime leader . ''

Obama said , `` I am extraordinarily grateful to have the support of one of the great public servants of these United States . ''

`` He 's done the kind of work that you want from your public servants , somebody who 's driven not just by raw ambition , not just by an interest in personal aggrandizement , '' Obama added . `` He 's been somebody who 's been motivated by the desire to make the lives of his constituents and working people a little bit better . ''

Obama and Sen. Hillary Clinton both lobbied Richardson for his endorsement .

Richardson said that his `` affection for Hillary Clinton and President Bill Clinton will never waver '' but that `` it is now time for a new generation of leadership . ''

Obama `` can bring us the change we so desperately need by bringing us together as a nation here at home and with our allies abroad , '' he said .

Hillary Clinton was named this week as Obama 's pick for another Cabinet post : secretary of state .

Richardson caused controversy in Democratic circles with his endorsement of Obama this year .

In April , Richardson said he was `` very close to endorsing '' Clinton but decided not to after the campaign became negative .

His endorsement was viewed as an act of betrayal by some longtime Clinton supporters .

CNN political analyst James Carville , who has close ties to both Clintons , likened Richardson 's endorsement to Judas ' betrayal of Christ .

Richardson responded to Carville 's criticisms by saying that Carville and other Clinton supporters believe they are a `` dynasty '' and that they were `` clinging to the throne . ''

CNN 's Candy Crowley , Ed Hornick and Paul Steinhauser contributed to this report .

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Bill Richardson is New Mexico 's governor , former U.N. ambassador

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Richardson to be announced as commerce secretary nominee Wednesday

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He was a rival of Barack Obama 's during the Democratic primaries